These specialist mortgages are available to you if you have six months CIS payslips, a minimum of 15% deposit, and the tax on the Construction Industry Scheme must be deducted at 20%.
Because lenders will look at the gross income figure on your payslips, your affordability levels will generally be higher than before.
How much can I borrow?
Lenders will typically multiply your income figure, in this case the gross income on your payslips, by four or five times to determine your affordability.
Affordability does depend on your other commitments such as loans or credit cards, but if you had no other commitments, and earned £3,000 per month, you would look at multiplying that by 12 months, and then multiply that figure by four to work out your affordability.
In this example, you’d be able to afford £154,000.
What if I have bad credit?
If you have a poor credit history, there are some lenders who will still review your application as long as you have had no defaults or CCJs registered against you in the last two years.
For advice on getting a Construction Industry Scheme mortgage, speak to one of our expert advisers who will be able to help you with the next steps.